4 Things T-Mobile CEO John Legere Wants Investors to Know

By Markets Fool.com

T-Mobile has been having such a run of success -- at least when it comes to adding subscribers -- that its quarterly earnings calls tend to take on a festive tone.

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Some of that certainly comes from bombastic CEO John Legere who has more than a touch of Don King, P.T. Barnum, and 1980s bad-guy pro wrestling manager in him. Legere makes everything personal and has built his company at least partially by tearing down his rivals atAT&T, Verizon, andSprint.

This quarter's call was no less celebratory than others in recent memory since the company added1.8 million total new customersin the first quarter of 2015 -- its eighth consecutive quarter adding over 1 million. T-Mobile also adjusted its guidance range for branded postpaid net adds from 3 to 3.5 million and reported total revenues of$7.8 billion, up 13.1% over last year.

It was largely good news (though not entirely so) and Legere expressed his glee in the earnings press releasein his usual fashion:

We've had eight consecutive quarters with more than one million total net customer additions proving that customers want value. We expect to once again capture all of the industry's postpaid phone growth in Q1 and we've done it while delivering an all-time record low 1.3% churn. #WeWon'tStop.

Aside from the top-line numbers, and hashtagged boasting, there were a number of other things T-Mobile shared during the earnings call.

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Source: YouTube

Legere is confident in the dropping churn numbers
As he noted in the comments above, Legere reiterated during the call that he was very confident in the company's dropping churn numbers. "The second two months of the quarter were actually lower than 1.3%," he said. "This is a record low for us. ... It demonstrates the real improvements we've made at T-Mobile."

The CEO stated that he took the declining churn as a sign that the company's Un-carrier initiatives were taking root with the public. "It's giving customer not only a reason to come, but a reason to stay," he said, citing the company's improving network as "a major source of increased customer satisfaction."

The CEO believes it can continue
Legere noted that he was often asked the question, "How long can T-Mobile keep tearing up the industry and putting up these kinds of numbers?"

He answered the question by noting that the company has about a 16.5% market share among the four major wireless carriers. That's an increase from "about 11.5% two years ago," Legere said, "but we still have a long way to grow."

The company added about 26%of all postpaid gross adds in the industry for the quarter.

Efforts to reach business customers are working
In the first quarter, T-Mobile launched Un-carrier 9.0, which was aimed at bringing in business customers. The new initiative offered companies a clear pricing structure with each line costing $15 up to 1,000 lines and $10 thereafter. Data plans are similarly uncomplicated with the 9.0 offering, and Legere said that the efforts are working.

"[We're] doing for by business what we're already doing for consumers by eliminating pain points and forcing change," he said. "Post-launch weekly retail business sales have more than doubled."

Legere believes in taking risks
T-Mobile, along with Sprint, has partnered withGoogle on Fi, a new wireless phone offering from the search giant. The service works by routing calls and data over Wi-Fi when possible and its partner networks when it's not. Legere loves the idea and being part of it, but not necessarily because the deal will make money for his company.

"This is going to make people think differently about wireless and I love that," he said. "Anything that shakes up the industry's status quo is a good thing for both U.S. wireless consumers and T-Mobile."

The CEO did not cite any numbers in relation to the deal where T-Mobile does get paid when Fi users access its network. Instead, he focused on the broader notion that simply being a disruptive force and trying new models should be good for users.

"There's no doubt that Google and us share a vision that is great for customers," he said.

The article 4 Things T-Mobile CEO John Legere Wants Investors to Know originally appeared on Fool.com.

Daniel Kline owns shares of Apple. He looks a little bit like a younger, less fit John Legere. The Motley Fool recommends Apple, Google (A shares), Google (C shares), and Verizon Communications. The Motley Fool owns shares of Apple, Google (A shares), and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.